Almonds Grown in California; Revision to Requirements Regarding Credit for Promotion and Advertising, 36816-36819 [05-12623]

Download as PDF 36816 Federal Register / Vol. 70, No. 122 / Monday, June 27, 2005 / Rules and Regulations The Committee discussed alternatives to this rule, including alternative expenditure levels, but determined that the recommended expenses were reasonable and necessary to adequately cover program operations. Lower assessment rates were considered, but not recommended because they would not generate the income necessary to administer the program. A review of historical information and preliminary information pertaining to the upcoming crop year indicates that the producer price for the 2005–2006 season could range between $5.05 and $7.75 per hundredweight. Therefore, the estimated assessment revenue for the 2005–2006 fiscal period as a percentage of total producer revenue could range between 0.40 and 0.26 percent. This action decreases the assessment obligation imposed on handlers. Assessments are applied uniformly on all handlers, and some of the costs may be passed on to producers. However, decreasing the assessment rate reduces the burden on handlers, and may reduce the burden on producers. In addition, the Committee’s meeting was widely publicized throughout the Colorado potato industry and all interested persons were invited to attend and participate in the Committee’s deliberations on all issues. Like all Committee meetings, the May 12, 2005, meeting was a public meeting and all entities, both large and small, were able to express views on the issues. Finally, interested persons are invited to submit information on the regulatory and informational impacts of this action on small businesses. This action imposes no additional reporting or recordkeeping requirements on either small or large Colorado potato handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https://www.ama.usda.gov/ fv/moab.html. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. After consideration of all relevant material presented, including the information and recommendation submitted by the Committee and other available information, it is hereby found that this rule, as hereinafter set forth, VerDate jul<14>2003 16:46 Jun 24, 2005 Jkt 205001 will tend to effectuate the declared policy of the Act. Pursuant to 5 U.S.C. 553, it is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice prior to putting this rule into effect, and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because: (1) The 2005–2006 fiscal period begins on July 1, 2005, and the order requires that the rate of assessment apply to all assessable Colorado potatoes handled during such fiscal period; (2) this action decreases the assessment rate for assessable potatoes beginning with the 2005–2006 fiscal period; (3) handlers are aware of this action which was unanimously recommended by the Committee at a public meeting and is similar to other assessment rate actions issued in past years; and (4) this interim final rule provides a 60-day comment period, and all comments timely received will be considered prior to finalization of this rule. List of Subjects in 7 CFR Part 948 Marketing agreements, Potatoes, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR part 948 is amended as follows: I PART 948—IRISH POTATOES GROWN IN COLORADO 1. The authority citation for 7 CFR part 948 continues to read as follows: I Authority: 7 U.S.C. 601–674. 2. Section 948.215 is revised to read as follows: I § 948.215 Assessment rate. On or after July 1, 2005, an assessment rate of $0.02 per hundredweight is established for Colorado Area No. 3 potatoes. Dated: June 20, 2005. Kenneth C. Clayton, Acting Administrator, Agricultural Marketing Service. [FR Doc. 05–12619 Filed 6–24–05; 8:45 am] BILLING CODE 3410–02–P PO 00000 Frm 00008 Fmt 4700 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 981 [Docket No. FV05–981–1 IFR] Almonds Grown in California; Revision to Requirements Regarding Credit for Promotion and Advertising Agricultural Marketing Service, USDA. ACTION: Interim final rule with request for comments. AGENCY: SUMMARY: This rule revises the requirements regarding credit for promotion and advertising activities under the administrative rules and regulations of the California almond marketing order (order). The order regulates the handling of almonds grown in California and is administered locally by the Almond Board of California (Board). The order is funded through the collection of assessments from almond handlers. Under the order, handlers may receive credit towards their assessment obligation for certain expenditures for marketing promotion activities, including paid advertising. This rule revises the requirements regarding the activities for which handlers may receive such credit. The changes will expand the credit allowed for certain promotional activities, and help to clarify and simplify the current regulations. DATES: Effective August 1, 2005; comments received by August 26, 2005 will be considered prior to issuance of a final rule. ADDRESSES: Interested persons are invited to submit written comments concerning this rule. Comments must be sent to the Docket Clerk, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938, E-mail: moab.docketclerk@usda.gov, or Internet: https://www.regulations.gov. All comments should reference the docket number and the date and page number of this issue of the Federal Register and will be available for public inspection in the Office of the Docket Clerk during regular business hours, or can be viewed at: https://www.ams.usda.gov/fv/ moab.html. FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing Specialist, California Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, Sfmt 4700 E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 70, No. 122 / Monday, June 27, 2005 / Rules and Regulations Suite 102B, Fresno, California 93721; Telephone: (559) 487–5901, Fax: (559) 487–5906; or George Kelhart, Technical Advisor, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720–2491, Fax: (202) 720–8938. Small businesses may request information on complying with this regulation by contacting Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or E-mail: Jay.Guerber@usda.gov. This rule is issued under Marketing Order No. 981, as amended (7 CFR part 981), regulating the handling of almonds grown in California, hereinafter referred to as the ‘‘order.’’ The order is effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601–674), hereinafter referred to as the ‘‘Act.’’ The Department of Agriculture (USDA) is issuing this rule in conformance with Executive Order 12866. This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is not intended to have retroactive effect. This rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c(15)(A) of the Act, any handler subject to an order may file with USDA a petition stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with law and request a modification of the order or to be exempted therefrom. Such handler is afforded the opportunity for a hearing on the petition. After the hearing USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA’s ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. This rule revises the requirements regarding credit for promotion and advertising activities prescribed under SUPPLEMENTARY INFORMATION: VerDate jul<14>2003 16:46 Jun 24, 2005 Jkt 205001 the administrative rules and regulations of the order. Under the order, handlers may receive credit towards their assessment obligation for certain expenditures for marketing promotion activities, including paid advertising. This rule revises the requirements regarding the activities for which handlers may receive such credit. The changes will expand the credit allowed for certain promotional activities, and help to clarify and simplify the current regulations. This action was unanimously recommended by the Board at a meeting on May 12, 2005. The order provides authority for the Board to incur expenses for administering the order and to collect assessments from handlers to cover these expenses. Section 981.41(a) provides authority for the Board to conduct marketing promotion projects, including projects involving paid advertising. Section 981.41(c) allows the Board to credit a handler’s assessment obligation with all or a portion of his or her direct expenditures for marketing promotion, including paid advertising that promotes the sale of almonds, almond products, or their uses. Section 981.41(e) allows the Board to prescribe rules and regulations regarding such credit for market promotion, including paid advertising activities. Those regulations are prescribed in § 981.441. The Board recommended the following changes to those regulations. Increasing Credit for Internet Promotion Activities Section 981.441(e)(4)(ii)(K) allows handlers to receive credit against their assessment obligation for the development and use of Web site activities on the Internet for advertising and public relations purposes. The allowable credit is currently limited to $5,000 per year, and no credit is given for costs regarding E-commerce (which is equivalent to opening a store). The Board recommended increasing the credit allowed for Internet promotional activities from $5,000 to $20,000 per year, adding credit for Ecommerce (except for administration costs), and clarifying that no credit would be given to Intranet (inter-office communication network). The Board determined that administration costs associated with E-commerce such as online payments and processing fees do not directly promote almonds and should thus be excluded from reimbursement under the program. This action would expand the allowable credit and activities concerning Web sites and thus provide handlers more flexibility. Section 981.441(e)(4)(ii)(K) is revised accordingly. PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 36817 Clarification Regarding Final Reimbursement Claims In order for handlers to receive credit against their assessment obligation for their own promotional expenditures, the Board must determine that such expenditures meet applicable requirements. Handlers must submit claims with appropriate documentation to the Board. Credit may be granted in the form of a payment from the Board, or as an offset to the Board’s assessment if activities are conducted and documented to the satisfaction of the Board within certain time frames throughout the crop year. Section 981.441(e)(6)(iv) currently requires handlers to submit a statement of all outstanding credit-back commitments in full to the Board as of the close of the crop year (July 31) within 15 days after the crop year ends (August 15). Additionally, handlers must submit final claims pertaining to such outstanding commitments to the Board within 76 days after the crop year ends (October 15). The Board recommended adding language to this section to clarify that final claims must be submitted ‘‘with all required elements,’’ which includes invoices, proof of payment, and similar documentation. This will allow Board staff to process the final claims for a crop year and complete the necessary accounting functions to close the books for that crop year in a timely manner. Other comparable deadlines throughout the credit-back regulations contain this language. This addition will help to facilitate program administration. Section 981.441(e)(6)(iv) is revised accordingly. Removal of Obsolete Language Section 981.441 contains language throughout the section that refers to the 1998–99 crop year only. The Board recommended removing this language to help clarify and simplify the regulation. Section 981.441 is revised accordingly. Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has considered the economic impact of this rule on small entities. Accordingly, AMS has prepared this initial regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of business subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and the rules issued thereunder, are unique in that they are brought about E:\FR\FM\27JNR1.SGM 27JNR1 36818 Federal Register / Vol. 70, No. 122 / Monday, June 27, 2005 / Rules and Regulations through group action of essentially small entities acting on their own behalf. Thus, both statutes have small entity orientation and compatibility. There are approximately 6,000 producers of almonds in the production area and approximately 115 handlers subject to regulation under the marketing order. Small agricultural producers are defined by the Small Business Administration (13 CFR 121.201) as those having annual receipts of less than $750,000, and small agricultural service firms are defined as those whose annual receipts are less than $6,000,000. Data for the most recently completed crop year indicate that about 48 percent of the handlers shipped over $6,000,000 worth of almonds and about 52 percent of the handlers shipped under $6,000,000 worth of almonds. In addition, based on production and grower price data reported by the California Agricultural Statistics Service (CASS), and the total number of almond growers, the average annual grower revenue is estimated to be approximately $261,248. Based on the foregoing, the majority of handlers and producers of almonds may be classified as small entities. This rule revises the § 981.441 of the order’s administrative rules and regulations regarding credit-back promotion and advertising. Under the order, handlers may receive credit towards their assessment expenditures for marketing promotion activities, including paid advertising. This rule increases the credit allowed for Internet promotion activities from $5,000 to $20,000 per year, adds credit for Ecommerce (excluding administration), and clarifies that final reimbursement claims submitted to the Board by handlers for a crop year must include all applicable documentation. Additionally, this rule removes obsolete language from the regulations that was applicable to the 1998–99 crop year. Regarding the impact of this rule on affected entities, it is estimated that, for the 2003–04 crop year, about 18 percent of the industry’s handlers participated in the credit-back program administered under the order. Increasing the credit allowed for Internet promotion activities and adding credit for E-commerce will provide additional opportunities for handlers. The changes to specify that handlers must submit final claims with all required elements will help to facilitate program administration. Finally, removing obsolete language will clarify and simplify the regulations. Regarding alternatives, the Board formed a task force that met on January 26, March 1, and April 1, 2005, to VerDate jul<14>2003 16:46 Jun 24, 2005 Jkt 205001 review the credit-back regulations. The task force considered several changes to the regulations, including whether handlers should receive credit for travel to trade shows, sponsorships, and sweepstakes. The task force also reviewed a handbook that Board staff developed to facilitate administration of the credit-back regulations. The task force’s recommendations were reviewed by the Board’s Public Relations and Advertising Committee on May 11, 2005, and by the full Board on May 12, 2005. Ultimately, the Board decided that the changes discussed herein are warranted at this time. This action imposes no additional reporting or recordkeeping requirements on either small or large California almond handlers. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the information collection requirements that are contained in this rule have been previously approved by the Office of Management and Budget and assigned OMB No. 0581–0178. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. Finally, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule. Additionally, the meetings were widely publicized throughout the California almond industry and all interested persons were invited to attend the meetings and participate in deliberations on all issues. Like all task force, committee and Board meetings, those meetings held on January 26, March 1, April 1, May 11, and May 12 were all public meetings and all entities, both large and small, were able to express views on this issue. Finally, interested persons are invited to submit information on the regulatory and informational impacts of this action on small businesses. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/ fv/moab.html. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. This rule invites comments on changes to the credit-back regulations under the California almond marketing order. Any comments received will be considered prior to finalization of this rule. After consideration of all relevant material presented, including the information and recommendation PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 submitted by the Board and other available information, it is hereby found that this rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act. Pursuant to 5 U.S.C. 553, it is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice prior to putting this rule into effect, and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because: (1) This action needs to be in effect by August 1, 2005, the start of the 2005–06 crop year; (2) handlers are aware of this action which was unanimously recommended by the Board at a public meeting; (3) this action expands the opportunities for handlers to receive credit towards their assessment obligation for certain promotional expenditures which they conduct; and (4) this interim final rule provides a 60-day comment period, and all comments timely received will be considered prior to finalization of this rule. List of Subjects in 7 CFR Part 981 Almonds, Marketing agreements, Nuts, Reporting and recordkeeping requirements. I For the reasons set forth in the preamble, 7 CFR part 981 is amended as follows: PART 981—ALMONDS GROWN IN CALIFORNIA 1. The authority citation for 7 CFR part 981 continues to read as follows: I Authority: 7 U.S.C. 601–674. 2. Section 981.441 is amended by: A. Revising the second sentence in paragraph (a); I B. Revising the first sentence in paragraph (b); I C. Revising paragraph (e)(4)(ii)(K); I D. Revising the first sentence in paragraph (e)(6)(ii); I E. Revising the second sentence in paragraph (e)(6)(iv); and I F. Removing paragraph (e)(4)(v) to read as follows: I I § 981.441 Credit for market promotion activities, including paid advertising. (a) * * * Credit will be granted either in the form of a payment from the Board, or as an offset to that portion of the assessment if activities are conducted and documented to the satisfaction of the Board at least 2 weeks prior to the Board’s first and second assessment billings, and at least 3 weeks prior to the Board’s third and fourth assessment billings in a crop year. * * * E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 70, No. 122 / Monday, June 27, 2005 / Rules and Regulations (b) The portion of the handler assessment for which credit may be received under this section will be billed, and is due and payable, at the same time as the portion of the handler assessment used for the Board’s administrative expenses, unless the handler(s) conduct and document activities at least 2 weeks prior to the first and second assessment billings and 3 weeks prior to the third and fourth assessment billings. * * * * * * * * (e) * * * (4) * * * (ii) * * * (K) Development and use of web-site on the Internet for advertising and public relations purposes, including Ecommerce (mail ordering through the Internet): Provided, That Credit-Back shall be limited to $20,000 per year for such activities, and no credit shall be given for costs for E-commerce administration, Extranet (restricted Web sites within the Internet), Intranet (interoffice communication network), or portions of a web-site that target the farming or grower trade. (iii) * * * (iv) * * * (5) * * * (6) * * * (ii) Handlers may receive credit against their assessment obligation up to the advertising amount of the assessment installment due: Provided, That handlers submit the required documentation for a qualified activity at least 2 weeks prior to the mailing of the Board’s first and second assessment notices, and at least 3 weeks prior to the mailing of the Board’s third and fourth assessment notices in a crop year. * * * (iii) * * * (iv) * * * Final claims pertaining to such commitments outstanding must be submitted with all required elements within 76 days after the close of that crop year. * * * * * * * * Dated: June 20, 2005. Kenneth C. Clayton, Acting Administrator, Agricultural Marketing Service. [FR Doc. 05–12623 Filed 6–24–05; 8:45 am] BILLING CODE 3410–02–P VerDate jul<14>2003 16:46 Jun 24, 2005 Jkt 205001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2005–20079; Directorate Identifier 2004–NM–147–AD; Amendment 39–14163; AD 2005–13–26] RIN 2120–AA64 Airworthiness Directives; Airbus Model A300 B2 and B4 Series Airplanes; Model A300 B4–600, B4–600R, and F4– 600R Series Airplanes, and Model C4– 605R Variant F Airplanes (Collectively Called A300–600 Series Airplanes); and Model A310–200 and –300 Series Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: SUMMARY: The FAA is adopting a new airworthiness directive (AD) for certain Airbus models, as specified above. This AD requires installing safety signs on all passenger/crew doors, emergency exit doors, and cargo compartment doors. This AD is prompted by a report of injuries occurring on in-service airplanes when crewmembers forcibly initiated opening of passenger/crew doors against residual pressure causing the doors to rapidly open. We are issuing this AD to ensure that crewmembers are informed of the risks associated with forcibly opening passenger/crew, emergency exit, and cargo doors before an airplane is fully depressurized, which will prevent injury to crewmembers, and subsequent damage to the airplane caused by the rapid opening of the door. DATES: This AD becomes effective August 1, 2005. The incorporation by reference of certain publications listed in the AD is approved by the Director of the Federal Register as of August 1, 2005. ADDRESSES: For service information identified in this AD, contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France. Docket: The AD docket contains the proposed AD, comments, and any final disposition. You can examine the AD docket on the Internet at https:// dms.dot.gov, or in person at the Docket Management Facility office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Management Facility office (telephone (800) 647–5227) is located on the plaza level of the Nassif Building at the U.S. Department of Transportation, 400 Seventh Street SW., room PL–401, PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 36819 Washington, DC. This docket number is FAA–2005–20079; the directorate identifier for this docket is 2004–NM– 147–AD. FOR FURTHER INFORMATION CONTACT: Tim Backman, Aerospace Engineer, International Branch, ANM–116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98055–4056; telephone (425) 227–2797; fax (425) 227–1149. SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39 with an AD for certain Airbus Model A300 B2 and B4 series airplanes; Model A300 B4–600, B4–600R, and F4–600R series airplanes, and Model C4–605R Variant F airplanes (collectively called A300–600 series airplanes); and Model A310–200 and –300 series airplanes. That action, published in the Federal Register on January 19, 2005 (70 FR 2985), proposed to require installing safety signs on all passenger/crew doors, emergency exit doors, and cargo compartment doors. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments that have been submitted on the proposed AD. Request To Revise Paragraph (h), Credit for Previous Service Bulletins One commenter notes that in paragraph (h) of the proposed AD, Airbus Service Bulletin A310–11–2002 is incorrectly referred to as Service Bulletin A300–11–2002. We infer that the commenter is requesting that we correct the typographical error. The commenter also notes a difference between the French airworthiness directive and the proposed AD, which could lead to requests for alternative methods of compliance from operators. The commenter points out that the proposed AD specifies the use of Service Bulletin A310–11–2002, Revision 03, dated February 4, 2004, and that actions accomplished before the effective date of the AD, in accordance with Revision 2, dated January 27, 1995, are acceptable for compliance with the actions specified in paragraph (g) of the proposed AD. The French airworthiness directive references Service Bulletin A310–11– 2002, or any later approved revision. The commenter recommends that the original issue and Revision 1 of Service Bulletin A310–11–2002 be included in paragraph (h), ‘‘Credit for Previous Service Bulletins,’’ of the proposed AD. We agree with the commenter’s requests and have revised paragraph (h) of this AD to correct the typographical E:\FR\FM\27JNR1.SGM 27JNR1

Agencies

[Federal Register Volume 70, Number 122 (Monday, June 27, 2005)]
[Rules and Regulations]
[Pages 36816-36819]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-12623]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV05-981-1 IFR]


Almonds Grown in California; Revision to Requirements Regarding 
Credit for Promotion and Advertising

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule revises the requirements regarding credit for 
promotion and advertising activities under the administrative rules and 
regulations of the California almond marketing order (order). The order 
regulates the handling of almonds grown in California and is 
administered locally by the Almond Board of California (Board). The 
order is funded through the collection of assessments from almond 
handlers. Under the order, handlers may receive credit towards their 
assessment obligation for certain expenditures for marketing promotion 
activities, including paid advertising. This rule revises the 
requirements regarding the activities for which handlers may receive 
such credit. The changes will expand the credit allowed for certain 
promotional activities, and help to clarify and simplify the current 
regulations.

DATES: Effective August 1, 2005; comments received by August 26, 2005 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938, E-mail: moab.docketclerk@usda.gov, or 
Internet: https://www.regulations.gov. All comments should reference the 
docket number and the date and page number of this issue of the Federal 
Register and will be available for public inspection in the Office of 
the Docket Clerk during regular business hours, or can be viewed at: 
https://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing 
Specialist, California Marketing Field Office, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 
Monterey Street,

[[Page 36817]]

Suite 102B, Fresno, California 93721; Telephone: (559) 487-5901, Fax: 
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 
720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 981, as amended (7 CFR part 981), regulating the handling of 
almonds grown in California, hereinafter referred to as the ``order.'' 
The order is effective under the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the 
``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule revises the requirements regarding credit for promotion 
and advertising activities prescribed under the administrative rules 
and regulations of the order. Under the order, handlers may receive 
credit towards their assessment obligation for certain expenditures for 
marketing promotion activities, including paid advertising. This rule 
revises the requirements regarding the activities for which handlers 
may receive such credit. The changes will expand the credit allowed for 
certain promotional activities, and help to clarify and simplify the 
current regulations. This action was unanimously recommended by the 
Board at a meeting on May 12, 2005.
    The order provides authority for the Board to incur expenses for 
administering the order and to collect assessments from handlers to 
cover these expenses. Section 981.41(a) provides authority for the 
Board to conduct marketing promotion projects, including projects 
involving paid advertising. Section 981.41(c) allows the Board to 
credit a handler's assessment obligation with all or a portion of his 
or her direct expenditures for marketing promotion, including paid 
advertising that promotes the sale of almonds, almond products, or 
their uses. Section 981.41(e) allows the Board to prescribe rules and 
regulations regarding such credit for market promotion, including paid 
advertising activities. Those regulations are prescribed in Sec.  
981.441. The Board recommended the following changes to those 
regulations.

Increasing Credit for Internet Promotion Activities

    Section 981.441(e)(4)(ii)(K) allows handlers to receive credit 
against their assessment obligation for the development and use of Web 
site activities on the Internet for advertising and public relations 
purposes. The allowable credit is currently limited to $5,000 per year, 
and no credit is given for costs regarding E-commerce (which is 
equivalent to opening a store).
    The Board recommended increasing the credit allowed for Internet 
promotional activities from $5,000 to $20,000 per year, adding credit 
for E-commerce (except for administration costs), and clarifying that 
no credit would be given to Intranet (inter-office communication 
network). The Board determined that administration costs associated 
with E-commerce such as online payments and processing fees do not 
directly promote almonds and should thus be excluded from reimbursement 
under the program. This action would expand the allowable credit and 
activities concerning Web sites and thus provide handlers more 
flexibility. Section 981.441(e)(4)(ii)(K) is revised accordingly.

Clarification Regarding Final Reimbursement Claims

    In order for handlers to receive credit against their assessment 
obligation for their own promotional expenditures, the Board must 
determine that such expenditures meet applicable requirements. Handlers 
must submit claims with appropriate documentation to the Board. Credit 
may be granted in the form of a payment from the Board, or as an offset 
to the Board's assessment if activities are conducted and documented to 
the satisfaction of the Board within certain time frames throughout the 
crop year.
    Section 981.441(e)(6)(iv) currently requires handlers to submit a 
statement of all outstanding credit-back commitments in full to the 
Board as of the close of the crop year (July 31) within 15 days after 
the crop year ends (August 15). Additionally, handlers must submit 
final claims pertaining to such outstanding commitments to the Board 
within 76 days after the crop year ends (October 15).
    The Board recommended adding language to this section to clarify 
that final claims must be submitted ``with all required elements,'' 
which includes invoices, proof of payment, and similar documentation. 
This will allow Board staff to process the final claims for a crop year 
and complete the necessary accounting functions to close the books for 
that crop year in a timely manner. Other comparable deadlines 
throughout the credit-back regulations contain this language. This 
addition will help to facilitate program administration. Section 
981.441(e)(6)(iv) is revised accordingly.

Removal of Obsolete Language

    Section 981.441 contains language throughout the section that 
refers to the 1998-99 crop year only. The Board recommended removing 
this language to help clarify and simplify the regulation. Section 
981.441 is revised accordingly.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule on small entities. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about

[[Page 36818]]

through group action of essentially small entities acting on their own 
behalf. Thus, both statutes have small entity orientation and 
compatibility.
    There are approximately 6,000 producers of almonds in the 
production area and approximately 115 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration (13 CFR 121.201) as those having 
annual receipts of less than $750,000, and small agricultural service 
firms are defined as those whose annual receipts are less than 
$6,000,000.
    Data for the most recently completed crop year indicate that about 
48 percent of the handlers shipped over $6,000,000 worth of almonds and 
about 52 percent of the handlers shipped under $6,000,000 worth of 
almonds. In addition, based on production and grower price data 
reported by the California Agricultural Statistics Service (CASS), and 
the total number of almond growers, the average annual grower revenue 
is estimated to be approximately $261,248. Based on the foregoing, the 
majority of handlers and producers of almonds may be classified as 
small entities.
    This rule revises the Sec.  981.441 of the order's administrative 
rules and regulations regarding credit-back promotion and advertising. 
Under the order, handlers may receive credit towards their assessment 
expenditures for marketing promotion activities, including paid 
advertising. This rule increases the credit allowed for Internet 
promotion activities from $5,000 to $20,000 per year, adds credit for 
E-commerce (excluding administration), and clarifies that final 
reimbursement claims submitted to the Board by handlers for a crop year 
must include all applicable documentation. Additionally, this rule 
removes obsolete language from the regulations that was applicable to 
the 1998-99 crop year.
    Regarding the impact of this rule on affected entities, it is 
estimated that, for the 2003-04 crop year, about 18 percent of the 
industry's handlers participated in the credit-back program 
administered under the order. Increasing the credit allowed for 
Internet promotion activities and adding credit for E-commerce will 
provide additional opportunities for handlers. The changes to specify 
that handlers must submit final claims with all required elements will 
help to facilitate program administration. Finally, removing obsolete 
language will clarify and simplify the regulations.
    Regarding alternatives, the Board formed a task force that met on 
January 26, March 1, and April 1, 2005, to review the credit-back 
regulations. The task force considered several changes to the 
regulations, including whether handlers should receive credit for 
travel to trade shows, sponsorships, and sweepstakes. The task force 
also reviewed a handbook that Board staff developed to facilitate 
administration of the credit-back regulations. The task force's 
recommendations were reviewed by the Board's Public Relations and 
Advertising Committee on May 11, 2005, and by the full Board on May 12, 
2005. Ultimately, the Board decided that the changes discussed herein 
are warranted at this time.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large California almond handlers. In 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35), the information collection requirements that are contained in this 
rule have been previously approved by the Office of Management and 
Budget and assigned OMB No. 0581-0178. As with all Federal marketing 
order programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies. Finally, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Additionally, the meetings were widely publicized throughout the 
California almond industry and all interested persons were invited to 
attend the meetings and participate in deliberations on all issues. 
Like all task force, committee and Board meetings, those meetings held 
on January 26, March 1, April 1, May 11, and May 12 were all public 
meetings and all entities, both large and small, were able to express 
views on this issue. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance 
guide should be sent to Jay Guerber at the previously mentioned address 
in the for further information contact section.
    This rule invites comments on changes to the credit-back 
regulations under the California almond marketing order. Any comments 
received will be considered prior to finalization of this rule.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register because: (1) This action needs to be in effect by August 1, 
2005, the start of the 2005-06 crop year; (2) handlers are aware of 
this action which was unanimously recommended by the Board at a public 
meeting; (3) this action expands the opportunities for handlers to 
receive credit towards their assessment obligation for certain 
promotional expenditures which they conduct; and (4) this interim final 
rule provides a 60-day comment period, and all comments timely received 
will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 981

    Almonds, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

0
For the reasons set forth in the preamble, 7 CFR part 981 is amended as 
follows:

PART 981--ALMONDS GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 981 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Section 981.441 is amended by:
0
A. Revising the second sentence in paragraph (a);
0
B. Revising the first sentence in paragraph (b);
0
C. Revising paragraph (e)(4)(ii)(K);
0
D. Revising the first sentence in paragraph (e)(6)(ii);
0
E. Revising the second sentence in paragraph (e)(6)(iv); and
0
F. Removing paragraph (e)(4)(v) to read as follows:


Sec.  981.441  Credit for market promotion activities, including paid 
advertising.

    (a) * * * Credit will be granted either in the form of a payment 
from the Board, or as an offset to that portion of the assessment if 
activities are conducted and documented to the satisfaction of the 
Board at least 2 weeks prior to the Board's first and second assessment 
billings, and at least 3 weeks prior to the Board's third and fourth 
assessment billings in a crop year. * * *

[[Page 36819]]

    (b) The portion of the handler assessment for which credit may be 
received under this section will be billed, and is due and payable, at 
the same time as the portion of the handler assessment used for the 
Board's administrative expenses, unless the handler(s) conduct and 
document activities at least 2 weeks prior to the first and second 
assessment billings and 3 weeks prior to the third and fourth 
assessment billings. * * *
* * * * *
    (e) * * *
    (4) * * *
    (ii) * * *
    (K) Development and use of web-site on the Internet for advertising 
and public relations purposes, including E-commerce (mail ordering 
through the Internet): Provided, That Credit-Back shall be limited to 
$20,000 per year for such activities, and no credit shall be given for 
costs for E-commerce administration, Extranet (restricted Web sites 
within the Internet), Intranet (inter-office communication network), or 
portions of a web-site that target the farming or grower trade.
    (iii) * * *
    (iv) * * *
    (5) * * *
    (6) * * *
    (ii) Handlers may receive credit against their assessment 
obligation up to the advertising amount of the assessment installment 
due: Provided, That handlers submit the required documentation for a 
qualified activity at least 2 weeks prior to the mailing of the Board's 
first and second assessment notices, and at least 3 weeks prior to the 
mailing of the Board's third and fourth assessment notices in a crop 
year. * * *
    (iii) * * *
    (iv) * * * Final claims pertaining to such commitments outstanding 
must be submitted with all required elements within 76 days after the 
close of that crop year. * * *
* * * * *

    Dated: June 20, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-12623 Filed 6-24-05; 8:45 am]
BILLING CODE 3410-02-P
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